E-Wave for the S&P 500 Index

[JLS]

The problem with VIX.

It's a measure of very short-term historical (and current) volatility of the market which is always higher during a sell-off. It knows nothing about the future but it can (and does) affect the future as traders react to it, especially if they try to trade VIX.

Given that traders will react to it (and do that during its early and late stages), it will obviously affect both the current and future market prices, and that will reflect back and affect VIX itself.

Therefore, it's a market cannibal with very high volatility. Be very careful trying to trade VIX itself as that will take money away from the rest of the market and that will result in a lower VIX as it's gotten fatter (more calm) after traders leave the market.